Jan van Eck, CEO at Vaneck Investment Management, spoke to CNBC about his predictions regarding bitcoin and gold in an interview. His company manages assets worth $69 billion.
He was asked if gold should be considered an investment or a trade that could yield additional profits at current levels.
We are just at the beginning of what could become a long-term cycle in gold. I also included bitcoin in this category.
“Finally, you have been rewarded as a gold investor over the past few weeks. Gold rallied despite weakness in the banking system. The executive said that’s why gold is so valuable.
Vaneck CEO explained that it could take a two year cycle because he believes the Fed is nearing the end of its tightening. He explained that the market is now worried about the consequences. It could take up to a year for the consequences to hit the commercial real estate market and the banking and lending dynamics. [And] maybe there will be a short recession. He elaborated:
The Fed will eventually ease up, and gold will really start to dance.
Vaneck’s executive commented on bitcoin and gold:
All speculation in these markets is speculative, I believe.
Van Eck noted that bitcoin had risen nearly 70% in the past year, surpassing all other assets. He also praised ‘the people who own bitcoin for their thesis of wanting to hedge their portfolio.
Pantera Capital stated last month that we are already in the next bear market cycle bitcoin. The Federal Reserve increased interest rates 25 basis points last week. Many people, including billionaire Jeffrey Gundlach, expect the Fed’s rate cuts to occur soon.
Fed Chair Jerome Powell said that rate cuts are not part of the Fed’s base case. Peter Schiff, an economist, stated that the Fed has already returned to quantitative easing regardless of whether they admit or not.